In February, the UK Supreme Court ruled that Uber drivers are workers, not self-employed drivers. The result of this would be huge for workers' rights, for the many people who work within the gig economy. This decision made by the Supreme Court changes how all companies within the gig economy will function in the future.
The court ruled that Uber driver can’t increase their pay through improving their own “professional or entrepreneurial skill[s]”, thus meaning that they’re not self-employed and instead of that they are workers of Uber. Under UK law if someone’s employment status is categorised as a worker they’re entitled to, getting the minimum wage, a statutory minimum of paid holidays and length of rest breaks, protection against unlawful wage deductions as well as not working more than 48 hours on average per week. This ruling thus affects not just Uber but all the companies in the gig economy such as Deliveroo, Addison Lee, and Just Eat.
Earlier this month, it was revealed that Addison Lee drivers could be entitled to an average of £10,000 as a result of a similar ruling as the Uber ruling. The companies that exist within the gig economy are having to evolve and change their business models in order to fit the idea that their workers are no longer deemed as self-employed. This change could result in price rises for customers of gig economy service companies, in an attempt to maintain the same profit margins as the costs to run the company increases. It also raises the question about whether these companies will be able to maintain a uniform service as they did before. Will policies of companies change to make drivers, or similar, truly self-employed? If this were to take place it would mean a decline in the consistency of service delivered by these companies.
It is by no means an understatement to say that the UK Supreme Court’s ruling regarding Uber has set a huge precedent for how companies in the gig economy will have to function moving forward.
